A negative externality is internalized when __________ until the socially optimum level of production is obtained.
A. supply shifts to the left
B. supply shifts to the right
C. demand shifts to the right
D. b and c
E. none of the above
Answer: A
You might also like to view...
Economic growth in less-developed countries comes at the cost of
a. higher taxes b. lower current consumption c. lower taxes d. lower government spending e. lower future consumption
The nice thing about a pollution tax is that it
a. eliminates pollution b. forces cleanup to occur c. is imposed only on the market with the externality d. creates new property rights e. creates positive externalities to compenstate for negative externalities
A foreign exchange intervention that does not alter the domestic monetary base is:
A. impossible. B. sterilized. C. likely to change domestic interest rates. D. unsterilized.
When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?
A) productivity B) the price of the firm's product C) the average wage in the country D) the average wage in the industry E) none of the above